Crowdventure is an online investment platform that uses the internet to pool investors’ funds in real-estate opportunities. Accredited Investor members have access to information on a variety of investment opportunities and can invest as little as $5,000 into each opportunity. Execution of investor documents and fund transfers are handled securely through our platform as well, allowing you to complete the entire transaction through our website.
On the specific investment’s page, click the button ‘Request Access’, to view a investment’s details. On the next screen, you will be able to invest by simply entering your investment amount. The next page will provide transaction instructions for you to transfer your funds. You can usually purchase your investment via check, ACH or wire. Once completed, you will be directed back to this platform and receive a confirmation email.
Crowdventure allows you to passively invest in professionally managed real estate investments for as little as $5,000, from the convenience of your living room. As an Accredited Investor member, you will have access to pre-screened deals in a variety of asset types and geographies, giving you the ability to become involved in opportunities historically only available to large institutions. You will also have access to an investor dashboard where you can securely monitor your investments.
Crowdventure sets up a separate Limited Liability Company Series, for each investment opportunity that is listed on the platform. When you invest through CrowdVenture, you own shares in that Series.
If the target funding amount is not met, 100% of funds transferred by you to us will be returned to you. Please note that in certain cases, the target funding amount may be increased in order to meet investor demand for a specific investment opportunity.
CrowdVenture investors will receive quarterly updates and reporting for each investment via email and directly to their online investor dashboard.
CrowdVenture screens all investment opportunities prior to listing them on our online platform. This screening process usually includes background and credit checks on the company offering the investment as well as a review of financials, projected returns, title and inspection reports, and comparable sales where relecvant. Once an investment is listed, you will have access to detailed investment information including financials, property information, legal and financial documents and investment manager bios in order to allow you to make an informed investment decision. Each investment has a target funding amount and Investors who opt in for a specific investment will have their desired investment commitment held until the funding amount has been met. If the target funding amount is not met, 100% of your investment commitment will be returned to you. Upon an investment being fully funded, it usually takes 2-3 weeks before the deal closes and investors start accruing returns. Our platform also allows you to review and execute all applicable legal and investor documents online prior to transferring funds to escrow. Please note that CrowdVenture does not have discretion on how your funds are deployed once you opt in for a specific investment. Please also note that CrowdVenture does not guarantee the performance of any investment listed on CrowdVenture.com
No. When you contribute to a project, we simply process payment authorization. The money will be transferred to the project manager’s account if and only if the project succeeds in meeting its financial goal. You will be notified via email in all cases.
Unfortunately, once the offering has ended and the funds have been transferred it’s out of our hands.
Registering on the website and contributing projects is completely free. Fees vary – please contact support for more information.
Yes, depending on when you decide to cancel. Please send us a message using the contact form if you have any questions.
Private real estate investments of the type you find on CrowdVenture are not traded on a public market and as a result, your shares in these investments cannot be easily traded or sold. Each investment has a unique projected “hold period”. The hold period is the expected time investors will be involved with the investment until it is re-sold or the loan is paid off. Please note that the “hold period” is an estimate and may differ from the actual hold period for the investment. . For more details regarding the hold period, please review the Operating Agreement and Subscription Agreement associated with the specific investment.
Unfortunately, not at the moment. Given the unique tax and legal issues involved, CrowdVenture is not currently available to non-US investors. However, we are working on changing that so if you are interested and are located outside the U.S., please contact us so we can give you an update.
Joining CrowdVenture and browsing the investment opportunity marketplace is free. If you choose to invest in a specific offering, CrowdVenture will charge a fee to cover ongoing investor reporting and communications for the investment. Please review the operating agreement for details on the fees associated with a specific investment.
Before placing any investment opportunity on our platform, the Crowdventure team reviews aspects of the proposed transaction, such as: financials, geography, property type and quality, and investment structure. In order to decrease fraud, we also perform background and credit checks on the investment Companies. While each investment includes risk and Crowdventure cannot guarantee results, our vetting process seeks to ensure that only quality investment properties are listed on the platform. Once an investment opportunity is listed on the platform, investors have full discretion as to whether to personally invest in the opportunity, and if so, how much.
Please feel free to contact us directly at firstname.lastname@example.org and include the name of the investment in the subject line.
In order to protect your personal information, we use 128-bit encryption whenever you visit our website. This is the same level of encryption used by top national banks. For added protection, we never store your banking information on our servers and we automatically log you out of your account after 15 minutes of inactivity.
Why invest in real estate through Crowdventure rather than through REITs or a direct investment in rental property
- Because of landlords’ desire to have some measure of control of the property, rentals tend to be bound to their personal local markets and the corresponding local prevailing market conditions. CrowdVenture enables investment in higher appreciating markets because of its national reach.
- With a REIT you hand control over to a professional manager Direct investing in a Crowdventure opportunity enables you to leverage your personal knowledge to uncover promising opportunities.
- Owning and renting your own property is not passive by any means. In addition rental real estate has many carrying costs associated with maintaining (e.g., insurance, property tax, mortgage, maintenance) the property and keeping it leased.
- Rental properties are very expensive and, therefore, true diversification is beyond the means of many real estate investors.
- As a rental landlord, you have to find tenants, handle repairs, and keep track of accounting details. If you own more than a few properties, the effort involved can easily turn into a full-time job. You could hire a property manager to do the dirty work, but that would take a significant chunk of your profits.
There is currently a minimum investment of $10,000 per investment, although this may vary for future transactions on our site. For select investments, we also offer minimums as low as $1,000. There is no maximum and an investor can invest the full funding amount.
Am I responsible for the typical payments and expenses associated with purchasing and owning residential property?
No. Your investment is a “passive” equity stake or a participation in a trust deed or loan note.
All funds transferred through the Crowdventure website or by wire transfer (if you are investing through an IRA) are deposited into an FDIC-insured (up to $250,000) Bank Account through our escrow partners FundAmerica, LLC. Funds are kept in this account until the target funding amount is reached. Once the target funding amount is reached, funds are transferred for the sole purpose of the specific loan or specific property you are investing in. If the target funding amount is not met, 100% of your funds are returned directly to you. Please note that it usually takes 2-3 weeks after the target funding amount is reached before an investment closes and starts accruing a return for participating investors.
I belong to a real estate investment club that buys property as its own standalone legal entity. Can our club be the co-investor?
Absolutely. CrowdVenture is open to approved accredited investors. If your real estate investment club consists of individual accredited investors, or complies collectively with the definition of “accredited Investor” pursuant to applicable securities laws, your club may participate in PRIMARQ investment opportunities.
Regulatory / Legal
Add some content to your accordion item here.CrowdVenture is not currently operating under either Title II or Title III of the JOBS Act. Rather, all investment offerings made available through CrowdVenture are conducted under existing Regulation D, Rule 506(c) and accordingly available only to Accredited Investors behind a secure firewall.
FundAmerica, LLC is a registered broker-dealer with FINRA and member of SIPC. FundAmerica is affiliated with CrowdVenture and provides broker/dealer and escrow services to CrowdVenture.
While the Securities and Exchange Commission has rules requiring the registration of securities issues by private companies, it has provided an exemption for offerings made to Accredited Investors. In order to comply with this exemption, CrowdVenture is a private, password-protected platform for accredited investors.
CrowdVenture offers investment opportunities solely to “accredited investors” through a private offering under Rule 506(c) of Regulation D. During sign-up, you will be required to self-certify your accreditation, which means that you must accurately answer a number of key questions to identify yourself as an “accredited investor”. Investments under Rule 506(c) of Regulation D require investors to provide tax returns, income statements, and/or letters from a CPA or attorney to prove their accreditation. We work with VerifyInvestor.com who help our investors manage this part of the accreditation process.
We accept all types of real estate investment offerings.
You can be pre-approved for our loan program prior to placing a property under contract.
Yes. We finance up to 100% of the purchase price and we can even provide additional funds for the rehab costs, assuming we have enough property collateral (this could include other properties that may be cross collateralized.)
While underwriting is based on many factors and can vary on a case-by-case basis, our general criteria include the following:
- Financially Successful Project – The bottom line is, we want you to make money on the deal. If the numbers make sense, we’ll lend you the money. If we don’t feel we can be of help, we will give you a timely answer so we don’t hold up your project.
- “Skin in the Game” – though we are eager to work with you and be a financial “partner” on your real estate investments, we need to know that we are all motivated to see the project through completion. We expect our Borrowers to either put up a percentage of the total deal costs, or to post additional collateral as a substitute. One of our competitive advantages is our ability to use existing equity in a borrower’s collateral so that they don’t have to come to the table with large amounts of cash.
- Exit Strategy – It is imperative you have a sensible plan of how to repay your loan. We need to be assured that you have two exit strategies.
We typically close our loans within 14 days or less from when we receive required documentation from you.
Typically points will be 4 to 6 points and interest 12% – 14%. Completing more projects with us will establish a successful track record, which then will qualify you for preferred rates.
Our primary focus is California and Minnesota. We do however finance in other parts of the country depending on the situation and deal.
Typically, yes. In the case of substantial equity, though, the appraisal requirement may be waived.
- Quick underwriting – We can analyze a transaction and issue a loan commitment in a matter of days, instead of up to several weeks with a conventional lender.
- Flexible programs – You can use the equity that you have accumulated in other real estate to help you purchase and renovate your next project instead of sourcing large amounts of your own cash.
- Experienced Real Estate Lending professionals – We have been in the Private Lending field for over 30 years. We will help guide you through the process and avoid potential pitfalls.
- Access to capital especially after the collapse of the sub-prime market. Conventional banks have restricted their lending making it difficult or even impossible to secure the extra funding you need to meet your goals. We are asset-based lenders who are focused on the real estate and the viability of your project as opposed to placing more importance on credit scores.
- Industry contacts – As long-time investors we have many industry contacts to help you along the way. We have pre-approved general contractors, relationships with conventional lenders to help you re-finance. We can recommend real estate agents to help you maximize the value of your investment and avoid hazards along the way.
Our rates vary from 10% to 14% on our standard loans & 12% – 14% on our Rehab loans.
We will always take the time to review an existing appraisal.
Credit may not be an issue, but having a sensible plan on how you will repay the loan is definitely required. Our funding criteria are based on equity in the property, not credit.
We also make loans to corporations and entities with no credit history.
Private Money is the term used when private investors invest either individually or in a group and in this case it is related to real estate investing. Hard Money on the other hand is actually private money from private investors that is placed through a Hard Money Broker. Private Money is usually considered quite a bit more flexible because the Private Money Lender is usually more hands-on than if the money is being placed through a Hard Money Broker. Private Money can be a good alternative to commercial bank lending in overcoming various hurdles such as timing, deal complication and risk. Private money lenders can step in to provide funds where conventional lenders cannot.
Our goal is to bring in most or sometimes all of the purchase and rehab money, assuming the values are strong, and we then split the profits after all expenses. If you as the borrower bring in money to the deal, you will be credited the same interest rate on your funds invested.
Our standard loan applications do not have a minimum credit score. However, various factors including credit score, overall financial strength, and ability to pay back the loan will factor into the maximum LTV, down payment, points, and interest rate.
Our loans currently range from $50,000 to $6,000,000 but we will look at larger loans on a case by case basis.
Generally we can lend up to 65% of After Repair Value.
The minimum loan amount we aim for is around $50,000, but we may consider lower depending on the viability of the project.
We currently focus on 1 to 4 unit residential homes, multifamily, rehab projects and some construction completion.
Each transaction and degree of risk is different. Once we evaluate the transaction, we will provide you with a firm quote in writing.
If you have additional Real Estate collateral, please call us to discuss all your options.